Getting it right: Case study of the Ahafo Gold Mine, Ghana

Transcription

1 Getting it right: Case study of the Ahafo Gold Mine, Ghana Best Practices for Mining & Sustainable Development in the Arctic, Luleå, Sweden, October 13-14, 2016 Dr Chris Anderson, Principal, Yirri Global LLC

2 Introduction & location

3 Ahafo: Introduction Gold mine in central Ghana, Brong Ahafo Region; first country in Africa to gain independence (1957); series of coups in 80s, but democratic and peaceful elections and transitions since late 1990s. Ghana ancient gold producer; modern gold mining last 100 years; mostly state-owned. Ahafo: 17 years from first discovery to production, 14 different deposits- string of pearls along 50km strike; five different ownerships; construction began under Newmont in 2003; first production 2006; k oz p.a. Newmont investment agreement signed with Parliament in Farming area; no previous gold mining. No industry other than subsistence and market farming. 180,000 people in ten villages. Chiefdom institution very strong. Remnant rain forest but mostly farm land (2 acres average; plantain, tomatoes, chili pepper, cocoa; cassava, etc.) National language is English. Ca 20 other languages.

4 Social & environmental context No modern industrial work history in region No previous dealings with large companies Lack of gold mining experience a good thing (no direct bad legacy) Local government capacity low People and their farms on top of deposits. Resettlement required IFC funding and therefore their Performance Standards & monitoring apply Good national EPA regulation on environmental side; not so much on social Low levels of education; local languages though most community leaders speak English. Health issues include malaria and HIV/AIDS.

5 Social & environmental consequences Resettlement of 10k people in 18 months Decisions on access to land for resettled people and their farms Alternative livelihoods & compensation Sustainable development (as opposed to handing out money or company doing everything) Speculation on land and farms Up to 8k direct jobs. 50k indirect and induced jobs nationally Training; move from construction workforce to operation and transition training Local supply emphasis (empowering local entrepreneurs e.g. Alexi Boampong)

6 Implementation of CSP Ahafo Social Responsibility Forum and consultation vehicles/ Agreements critical Local employment processes Local supply process & linkages program Payments to government transparency New funding basis via Foundation Newmont Ahafo Development Foundation Management of influx Malaria and HIV/AIDS programs Partnerships (Education, Health, Local Government capacity-building) AAGI; Vulnerable Peoples; women s programs Grievance management system

7 Social outcomes of Ahafo Mine Partial transformation of economy to wages work and commercial supply Larger scale agriculture & shift from substance to market farming Price increases for local goods Dramatic increase in wage employment & local businesses Significant increases in farmer income Involvement of community in decision-making; increased capacity all around Dramatically better communication infrastructure Safety culture Sustainable community development via NADEF Lower malaria and HIV/AIDs rates Not a single operational day in ten years lost due to community unrest.

8 Lessons learned from the tropics Communities as landlords; don t rely overly on governments Build a knowledge base Hire professionals Leadership In-reach: Behavior of employees & contractors Maximize opportunities for local businesses & entrepreneurs Social performance is not the same as community development or CSR Relationships and process are king Communication/Engagement Cultural factors Think local, act local Involve community in environmental monitoring & reporting Resettlement is very difficult to get right Free Prior & Informed Consent is coming!

9 What is your social performance like? Corporate thickness re Communities From: Harvard PAIED: On improving Tribal- Corporate Relations in the Mining Sector